Hospital, health tech company stocks fall faster than the market

Hospital, health tech company stocks fall faster than the market

Shares in nearly all the investor-owned hospital chains shed value at higher rates than the Dow Jones Industrial Average and S&P 500 on Wednesday, which declined 3.1% and 2.9%, respectively.

Tenet Healthcare Corp. saw the biggest drop among its peers. Shares of the Dallas-based company shed nearly 8% of their value on Wednesday. Franklin, Tenn.-based Community Health Systems saw its share price slide 7%.

Other hospital chains weren’t hit as hard. Shares in King of Prussia, Penn.-based Universal Health Services were down 2% Wednesday, and Nashville-based HCA Healthcare’s share price fell 3.6%.

Barely a month after slew of digital health companies began public trading in July, they took a sizeable hit.

Livongo Health and Phreesia, two digital health companies that went public last month, were down 6.4% and 8%, respectively.

Health Catalyst, another digital health company that began trading on the Nasdaq in July, dropped 10.5%.

More established players Cerner Corp. and Allscripts Healthcare Solutions fared better, down just 2% and 3%, respectively. Teladoc Health was down 6.7%.

Change Healthcare, the revenue cycle management company formed through a series of acquisitions and a merger with McKesson’s technology business, was up 9%. It began trading in June.

Most health insurers’ share prices were down about 2% to 3%, with Cigna Corp. taking the biggest hit at -5.5%.—With Shelby Livingston

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